We have raised our profit forecasts for 2015 and 2016, and it is estimated that the EPS for 2014-2016 will be 0.12,0.28,0.47 yuan respectively, corresponding to dynamic PE86X, 37x and 22x. Apple Inc company order landing, self-development and extension of double-driven development ideas to accelerate the implementation, once again take off gradually approaching, to maintain the "highly recommended" rating.
Apple Inc headquarters order landed: Tianjin Beibo Glass Industry Technology Co., Ltd., a subsidiary of the company, recently signed a "Glass Manufacturing Agreement" with Apple Inc Company of the United States. Tianjin Beibo will provide construction special structural glass for the construction project of Apple Inc's headquarters in the United States, with a total agreement amount of US $28.4365 million (equivalent to 175 million yuan). Prior to this, the company has signed a "Memorandum of intent" with Apple Inc of the United States, and received an advance payment of about 80 million yuan.
Significant contribution to 2015 performance: the 175 million yuan order products will all be used for the construction of Apple Inc's new headquarters in the United States, and the supply period is mainly concentrated in 2015, accounting for 21.18% of the company's 2013 operating income. We expect this contract to be thickened by RMB EPS0.05 in 2015. It further shows the leading level of the company's equipment, which is conducive to the follow-up market development: the cooperation with Apple Inc is a challenge and lead to the world's most advanced technology of glass products in toughening, low radiation coating, high strength and energy saving. The company has established a long-term cooperative relationship with Apple Inc and is an important supplier of Apple Inc store glass in China. The top two customers of the company in the first half of 2014 are from Apple Inc, accounting for more than 5% of the total revenue. The landing of the contract order with Apple Inc headquarters further shows the leading level of the company's equipment, and will also help to open up the international high-end architectural glass market.
Maintain the company's "highly recommended" rating and reiterate the company's endogenous and epitaxial-driven investment logic: we believe that the time for the company's endogenous growth has come, and the low-radiation coating equipment, TCO equipment and high-end glass products have all ushered in a better opportunity for development, which is the guarantee of the company's performance. In terms of extension, last month, the company and Haitong Jihe jointly launched the establishment of "Haitong Beibo Industrial Investment Fund", which marked a key step in the company's extension expansion, combined with the company's own development requirements, we believe that the company's extension development direction is mainly the enrichment of the product line and the extension of the industrial chain (downstream).
Risk hint: the extension of the industrial chain is lower than expected.